Frequently Asked Questions about Business Law
Take a look through these commonly asked questions regarding business law in Maryland and reach out to DK Rus Law to get additional help with the legal aspects of your business.
Q: How long does it usually take to get recognition of tax-exemption?
A: The entire process generally takes about 8-10 months from start to finish, usually depending on how fast the client gets information to me. The IRS is currently taking 6-8 months to review applications. (However, the tax-exemption from the IRS will date back to the original date of incorporation if the tax-exemption application is filed within 27 months from the incorporation.)
Q: Do I Need a Lawyer to Start a Business?
A: Technically, you don’t need a lawyer to start a business, you can do it on your own. That said, partnering with a lawyer you can trust at the inception of your business will make it much easier for you to start your business. Additionally, finding a reputable business lawyer early on will create a more seamless relationship if and when you need additional business law help.
Starting up a business in Maryland can be quite a complicated process. There will be more than a few legal documents involved and with the help of DK Rus Law, you can make the completion and submission of any and all legal documents during the business formation process painless and less complicated.
Q: How much does it cost to start a non-profit?
A: Costs will vary depending on the complexity of the application, but in general the costs are $220 payable to the State Department of Assessments and Taxation to form the Maryland Non-Profit Corporation, an IRS filing fee of either $400 or $850 (depending on your organization’s expected annual gross income), and the costs of legal services. The IRS estimates that completing and filing the Form 1023 (including gathering data) should take approximately 26 hours depending on the complexity of the organizational structure.
For a novice to attempt the accounting and legal work involved could double or even triple that number. My fees are $150 per hour for services performed for charitable organizations; the average bill for my services ranges between $3,000–$5,000, although large or complex matters may require more time. In addition, some organizations may wish to hire an accountant to prepare financial reports.